Did Google, Amazon and even Microsoft just set the bar too high for Apple?

“Last week we saw blowout earnings for Q3:15 from Amazon, Google and even Microsoft (not old-tech anymore) which could be a great set-up going into this week for Apple earnings on Tuesday, October 27, after the closing bell,” Jay Somaney writes for Forbes. “Or not!”

“For calendar Q3 (Apple FQ:4), Wall Street analysts are expecting Apple to report earnings of $1.88 per share on revenues of $51.1 billion,” Somaney writes. “Numbers for the September quarter matter very little except for headline shock or awe (dismay or pleasure). What matters is how the company guided for the December quarter and currently the sell-siders are modeling earnings of $3.21 per share on revenues of $77 billion.”

Somaney writes, “As far as unit breakdown forecasts for the September quarter for various major Apple products the range is pretty wide and as follows: iPhones estimates range from 46 to 49 million units with an average consensus of 47.7 million units; average of 5.7 million Macs with a range of 5.1 million to 5.8 million; average of 10.2 million iPads with a range of 9.8 million to 10.4 million”

Read more in the full article here.

MacDailyNews Take: No.

Apple to release Q415 earnings, webcast live conference call on October 27th – October 8, 2015


  1. MDN, I respectfully disagree. Apple will never be able to satisfy mythological expectations set by Wall Street. Apple will continue to succeed but the analysts will always say it isn’t enough. ‘Course, I’ll be plenty happy to be wrong 😉

  2. google’s earnings are as ever completely fake/fraudulent and Microsoft is still laying off staff by the cartload. Is this the supposed high bar this clueless jackass is alluding to?

      1. You are correct. At roughly 8 employees per cart, approximately 125 carts would be required. Now wagons are much larger than carts. You might be able to get by with 20 wagons. Boats range in size, but you might be able to fit those employees in a few boatloads.

        Profits made by cost cutting are not equivalent to profits made by growth. Apple has solid, healthy, and sustainable growth. That is why I invest in AAPL for the long term.

          1. If you are referring to Antonio Salieri, the Italian composer, I must admit that your point escapes me. But I greatly appreciate the politics-free commentary, botvinnik. It is refreshing and very welcome.

        1. Stock analysts constantly question whether Apple can sustain growth. According to them, the behemoth can topple at any moment. There are two few legs on the stool. It’s a constant nail-biter. How can you be so sanguine?

          1. As far as being sanguine about AAPL as an investment, it certainly helps that I am a long term investor. My investments in AAPL have performed well, so it is easier for me to shrug off the volatility. I admit that it would be a more difficult step to put a lot of money into AAPL now, as a new investor.

            Stock analysts have been predicting the demise of Apple since the mid-1990s, and they were very slow to recognize the world-changing impact of the iPod, iTunes, iPhone, iPad, and other Apple iOS and Mac products. People who listened to them missed out on an incredible investment opportunity. If those analysts were any good, then they would be independently wealthy and vacationing in the Virgin Islands rather than pimping their generally lousy and inaccurate guesses for money.

            For what it’s worth, I believe that the quick and easy money in AAPL is over. AAPL is not likely to rapidly double again unless it generates a new product line like the iPhone. Instead, I expect modest, but solid growth in the years ahead supported by a reasonable quarterly dividend. AAPL appears to be gradually transitioning into an income value stock with appeal to fundamental and value investors, as well.

            Apple certainly depends a great deal on the iPhone for revenue and profit. As long as Apple continues to deliver, however, that gravy train should chug along just fine for years to come. Furthermore, as evidenced by AAPL P/E, analysts and investors have already priced reduced future growth into the stock price. Personally, I feel reasonably confident that Apple can continue to produce solid growth (10-20%) for some time to come. In addition, nearly 28% of the price of AAPL is backed by cash and securities accumulated by Apple. That provides a strong support for the stock price.

            Full disclosure: I am not a pro! I am simply laying out my thought process in response to your question. You need to make your own investment judgments based on your personal financial situation. Use common sense, diversify your investments, understand your risk tolerance, and seek professional advice if you are uncertain about investing.

    1. Joe –

      Quick question… Who should they hire once they get the ax? Just wondering.. Obviously you seem to be in the know. Balmer? Fiorina? Oh wait, what about…

  3. One thing which will boost earnings is the $99 Apple is charging for a standard wireless keyboard they are calling “Magic.”

    Too much for an ordinary product. Logitech is ahead of Apple in keypads.

    What are they going to call the Apple Car? The Magicar?

  4. Apple has been breaking quarterly records for the last 10 years. Only the idiot anal-ists can’t comprehend that and always have an excuse to lower Apple’s stock. Google barely makes forecast and they raise there stock price by 60 dollars a share overnight.

  5. Amazing how stupid Americans have become.

    Amzn reported .17 in earnings per share with number of shares up 15 million. Management making out like bandits. Operating income reported is really one for the record books when after tax income is 80 percent less than pretax. Tax rate of 80 percent? Gobbledegook note on this explains nothing. AWS potential exaggerated by ANALs. In fact, AWS is destroying the likes of other cloud service companies (Hp, I’m, … ) when pricing is just a give away. Mr. B, laughing all the way to the bank given how the valuation is. Only reason AMZN survives is because the shysters give it a lifeline by upping the stock price. 15 million additional shares (I assume is given to management, wonder if shysters are partaking in this somehow) is worth billions. ANZN will never make a $1 per share. If the IRS and the courts really do their job, AMZN owes bundles in taxes.

    MSFT, GOOG and AMZN combined revenues far less than AAPL. How do the shysters keep pushing the price per share? They cannot do it with their own money. Wonder if the bag holders will be the pensions that they control. Management making out like bandits.

    I believe the shysters just have hated Jobs for so long that as long as he remains the person that most believe to be responsible for apple’s success, they will keep putting this company down. Their aim is to get Cook out and put in another beverage like CEO. Mr. B and Mr. M, are just licking their chops. Hopefully, the December quarter for Apple will put a stop to their best laid plans.

  6. “Last week we saw blowout earnings for Q3:15 from Amazon…” Really? 2014 net earnings for Amazon were -241 million. For Apple it was 39.5 BILLION. So If AMZN’s meager net of $79 million for the quarter is a blowout, what is AAPL’s? Of right, blowout is relative to random guesses, sorry, I forgot. So AAPL is disappointing. Left is right, up is down.

    AAPL currently has a P/E of 13.32 (including cash). Can someone please explain to me how AMZN, which pays no dividend and has a P/E ratio of 878, will expand its profitability 66-fold to meet AAPL’s performance? Keep in mind that with $89 billion dollars in revenue, AMZN would need ($89 billion)(66) = $5.9 TRILLION in revenues to make the same amount of cash as AAPL. So that’s not possible. And neither is raising their e-commerce margin which is between -2 to 2% at best. So all the rest will come from web services?

    What do idiots who recommend and purchase AMZN stock at these prices smoke and where can I get some?

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